The DoJ Strikes a Deal with Standard Chartered Bank SA

The DoJ Strikes a Deal with Standard Chartered Bank SA

The US Department of Justice (DoJ) announced that Standard Chartered Bank (Switzerland) SA, en liquidation (SCB Switzerland), reached an agreement under the US Tax Program. The bank signed an NPA and will pay a penalty.

As a remiinder SCB Switzerland joined the Standard Chartered group of entities in May 2008 when Standard Chartered PLC acquired American Express Bank Ltd. As part of that acquisition, Standard Chartered Group acquired American Express Bank (Switzerland) SA. In early 2014, the Standard Chartered Group decided to cease its Swiss private banking operations for commercial reasons. SCB Switzerland is now in voluntary formal liquidation. Subject to Swiss regulatory approval, SCB Switzerland expects to return its banking license at the end of 2015.

The DoJ says that ‘SCB Switzerland adopted the Advisory Center/Booking Center Model from American Express Bank. This method allowed clients to book and hold accounts in any of Standard Chartered Group’s booking centers, including Geneva, while working with relationship managers at other locations throughout the world. The Group also acquired a trust center from American Express Bank’.

In the SCB Switzerland’s NPA we learn that since August, 2008, the institution held 22 US-related accounts, with a maximum aggregated assets under management of $33.1m. SCB Switzerland will pay a penalty of $6.337m.